It has been reported that buyout firms had £1.2 trillion of cash to invest at the start of the year. Private equity bidders have been circling UK companies including Countrywide, AA, and William Hill along with the recent bid for McCarthy & Stone from Texan buyout firm Lone Star. Shares listed in London are trading at a large discount to other global markets which is blamed on years of uncertainty around Brexit, the fall in the pound and an absence of listed high-growth technology companies. As one leading fund manager stated “UK equities have seen nothing but outflows for three years after the referendum. We’re unloved… Ultimately, someone will take advantage of cheap assets.”
Data Source: Richard Buxton of Jupiter, Sunday Times 25/10/2020.